BASF to cut 6,000 jobs globally by 2021

Calling it an organisational realignment, German chemical firm BASF is set to reduce 6,000 jobs worldwide until the end of 2021, against the back of a slower growth in the chemicals sector. The axing of around 5% of its employees from its workforce is expected to save the company EUR300 million and forms a larger part of its plans to boost earnings by EUR2 billion a year from 2021, through a simplification of its organisation structure.

It intends to do this “by streamlining its administration, sharpening the roles of services and regions and simplifying procedures and processes”.

Even though, BASF says it will continue to need additional employees in fields like production or digitalisation, depending on future growth rates. Through this, it plans to make 29,000 jobs more flexible through the deployment of engineers, digital experts and other employees to different sites or units when needed.

“We will set up the new organisation with a clear focus on leveraging synergies, reducing interfaces and enabling flexibility and creativity,” said Dr. Martin Brudermüller, Chairman of the Board of Executive Directors of BASF. “We want our customers to experience a new BASF. To achieve this, we have to live a new BASF. We will therefore continue to develop our organisation to work more effectively and efficiently. In this way, we will ensure the success of our customers, strengthen our competitiveness, and grow profitably as a company.”

Customer-focused operating divisions, service units and regions as well as a lean Corporate Centre are the cornerstones of BASF’s new organisation. The Corporate Centre will consist of less than 1,000 employees and will support BASF’s Board of Executive Directors in steering the company as a whole. This includes central responsibilities, among others in the areas of strategy, finance, legal, human resources and communications.

The role of regions and countries is being sharpened. They represent BASF locally and support the growth of business units with local proximity to customers.First changes will take effect on January 1, 2020.

In view of the current changes and further changes planned until the end of 2021, management and employee representatives have jointly decided to move forward the start of negotiations on a new site agreement for the BASF SE. The current site agreement is valid until the end of December 2020. The goal is to sign a new agreement in the first half of 2020.